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View Full Version : Starz walks out of negotiations with Netflix over rate hike.



Don Landis
09-02-2011, 10:27 AM
Yesterday Starz refused to negotiate a rate hike to Netflix for Starz on streaming content for next year. Current contract ends on Feb 28th. The fear of this loss has caused the Netflix stock to nose dive. Netflix will concentrate bugeted revenue for content other than Starz now.

Scott Greczkowski
09-02-2011, 04:16 PM
Whats interesting is that DISH Network has signed Starz for its new Blockbuster Streaming service which is rumored to launch next month...

Dish reportedly launching Blockbuster movie streaming service next month -- Engadget (http://www.engadget.com/2011/09/02/dish-reportedly-launching-blockbuster-movie-streaming-service-ne/)

Don Landis
09-04-2011, 11:23 AM
Do you know if the pricing model for Dish will be similar to Netflix? Blockbuster now has a streaming service but is at PPV pricing. Last year when I sampled it the quality was not as good as Netflix. For PPV pricing, I think Vudu has the highest quality. They also have 3D collection.

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ohioankev
09-05-2011, 09:48 AM
I am thinking that Starz! sees higher value in licensing with Blockbuster under the Dish Network ownership. Largely this assumption is made since Dish Network actually is a TV provider and Dish Network could offer deals to Blockbuster users who are not Dish Network subscribers to entice them to switch over to pay TV and starz!

The Starz content was never in HD on Netflix and they could possibly do something like this....
Do you want to see this content in HD ? Join Dish Network & Sign up for Starz! today.

I don't know who would do this. Part of me wishes I could just get rid of the TV services I have in my house and just save the money I spend and watch Netflix but I have two other roommates who want television service.

Edit: nevermind most of what I posted above I just read that Starz! wanted Netflix to go into a tiered model of pricing.

So you would have to pay for
$8 Netflix Streaming
$15 (speculated by greed and what I pay now for the service) Starz! Content (which wouldn't fly unless it was in HD, and if they would have to find a way that if you already subscribe to Starz! on pay tv then you should get the Starz! content at no additional cost)
$15 for 2 movies at a time on DVD format.
$ 2 for blu ray service.

This would also give the power by other content owners to start negotiating for tiered pricing so if Netflix went that route Epix & MGM could have renegotiated a contract to charge more. So my Netflix account could have went from $25/month to $50 a month in no time.

http://www.dailytech.com/Netflix+Offered+Starz+300+Million+to+Renew+Contract/article22620c.htm

yaz96
09-06-2011, 01:22 PM
As I posted in the other Netflix thread -

09/02
I heard an analyst say today, this is probably not over. Starz may need Netflix more than Netflix needs Starz......

Contract doesn't expire for 6 months.

Don Landis
09-16-2011, 01:51 AM
As I posted in the other Netflix thread -

09/02
I heard an analyst say today, this is probably not over. Starz may need Netflix more than Netflix needs Starz......

Contract doesn't expire for 6 months.

Netflix reported yesterday that starz wanted $300M for the streaming license, up from the present $30 a year. No wonder Netflix said no deal.


I suspect streaming rates to increase for the all you can watch services next year and if the USPS cuts back service as they claim will soon happen that could be one more hidden rate increase for DVD.

Claude Greiner
09-16-2011, 02:02 AM
Netflix is trying to become an unwelcome 3rd pay television provider to DISH Network and Directv.

Both Dish Network and Directv are tired of loosing revenue due to Netflix.

Although I have no proof, I have a feeling that the Blockbuster deal had alot to do with Blockbuster refusing to deal with Netflix

Don Landis
09-19-2011, 04:37 PM
Netflix is trying to become an unwelcome 3rd pay television provider to DISH Network and Directv.

Both Dish Network and Directv are tired of loosing revenue due to Netflix.

Although I have no proof, I have a feeling that the Blockbuster deal had alot to do with Blockbuster refusing to deal with Netflix

1. It already is! by subscriber numbers, it is #1. :)

2. Welcome to competition.

3. If you mean the time when Blockbuster Board was considering buying Netflix but the Carl Ichan refused, that was a huge mistake that they admit today. Carl didn't believe the Netflix business model of a monthly subscription would work. He believed Netflix would quickly fail.

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